Dynamics Day 2012 Closing Keynote, Rod Oram, The Data driven business.
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Transcript of Dynamics Day 2012 Closing Keynote, Rod Oram, The Data driven business.
Dynamics Day
Closing Keynote
Dynamics Day 2012 Keynote
Don’t forget to hand in your
evaluation forms
Hand in to any of the Intergen
team.
Draw will be made over drinks
immediately after this final
session.
Data driven enterprise Introducing Rod Oram
Game-changers
Data-driven business
Rod Oram’s presentation to
Intergen’s Dynamics Day 2012
Auckland, October 31st, 2012
Kiwiki on Facebook / Twitter @RodOramNZ
[email protected] / +64 21 444 839
Agenda
• World
• Revolution
• New Zealand
• Opportunity
• Paradox
• Companies
Then…. …Now
• 2007-09
• Sudden liquidity crisis
• Big, quick fix
• Pump in lots of money
• Lots of political will
• Lots of public support
• Worked fast
• Markets re-assured
• Moved on to current phase
• 2009-20??
• Long-running structural crisis
• Big, slow fix
• Restructure economies
• Lack of political will
• Lack of public support
• Will work slowly
• Markets fearful
• Very, very stuck
Saving Europe is simple • All it would take is:
• French reform
• German extravagance
• Italian maturity
• …as The Economist opined May 12
People, planet • Vision 2050
• A very challenging roadmap for corporate development by World Business Council for Sustainable Development
• …NZ version just released
w • q
Agenda
• World
• Revolution
• New Zealand
• Opportunity
• Paradox
• Companies
Cradle to Cradle • One product gives rise to the next
• …waste, by-products and recycling of one, become materials for the next
• …emulating nature’s cycles
Ray Anderson • Founded Interface in 1973
• …15 years later world’s largest maker of carpet tiles
• His “mid-course correction” came in 1994, when he was 60
• 2020 goal: take nothing from the earth that could not be rapidly replenished, produce no greenhouse-gas emissions, and no waste
• By 2007 Interface was about halfway up “Mount Sustainability”
• Greenhouse-gas emissions by absolute tonnage were down 92%
• Water usage down 75%
• 74,000 tonnes of used carpet recovered from landfills
• Savings of $400m each year from no scrap and no off-quality tiles more than paid for the R&D and process changes
• As much as 25% of the company's new material from “post-consumer recycling”
• Sales had risen by two-thirds and profits had doubled
• Ray Anderson’s Economist obituary www.economist.com/node/21528583
The next 10 years • Finance and capital conditions
• Finance more expensive and less available • Market and regulatory constraints
• Less benign economic conditions
• Higher economic volatility; Increased risk
• Low carbon-economy • New disciplines & technology • Far greater resource efficiency • Technology change accelerating
• Public losing trust in business
• Scepticism over Anglo-Saxon model • More government intervention
• Social and demographic change
• New responses to retirement, pensions • New business & government solutions • E.g. more flexible working practices
“The Shape of Business”
Confederation of
British Industry
www.cbi.org.uk
Agenda
• World
• Revolution
• New Zealand
• Opportunity
• Paradox
• Companies
Slowth • We’re still recovering slowly…
…helped by rebuild of Christchurch
• Growth in year to June 2012 was 2.0%... ..could peak at 3% next year …dominated by Christchurch
• But will then sink back to its long-run slow growth average of around 2%
• Why can’t we grow faster, longer by earning a bigger living in the world economy?
…we must double growth • We need to more than double our growth rate to at least 5% a year
• …but our non-inflationary growth rate has dropped to 1.9%
• …and the growth trend will remain weak out to 2014, Treasury forecasts
Value creation & capture
• 1 Fonterra plant in NZ makes infant formula for Pfizer
• 8% Pfizer’s Chinese market share for infant formula
• US$12bn Nestlé paid for Pfizer’s infant formula brands
= 3 x Fonterra’s net asset value
Agenda
• World
• Revolution
• New Zealand
• Opportunity
• Paradox
• Companies
NZ 2050 • …by a group of young leaders…
• …under the NZ Business Council for Sustainable Development…
• …which morphed into the
• Sustainable Business Council
• Download at:
• http://bit.ly/PxiG1B
• NZ site coming soon at:
• http://www.vision2050nz.co.nz
• Vision 2050 Global report at:
• http://bit.ly/Ox0HsK
Agenda
• World
• Revolution
• New Zealand
• Opportunity
• Paradox
• Companies
Paradox
Abundance Scarcity
Re-invention
Scarcity Abundance
Poverty
Cows Scientists
Wealth
Lacto-pharmaceuticals Milk powder
a • a
How about creating global centres of excellence in: - Dairy nutrigenomics - Earthquake prediction, rescue & recovery - 21st century city systems - Antarctic research
Poverty
No.8 Game-changers
Wealth
Game-changers No. 8
LanzaTech…clean tech leader • Commercialisation agreement with:
• Chinese Academy of Sciences
• Baosteel; next pilot plant in China
• Makes biofuel from industrial waste gases
• Turns greenhouse gas liability into profit
• World pioneer of the science
• Auckland-based; NZ Steel pilot plant
• Big venture capital backing
• US$100m of capital so far
• NZ: Stephen Tindall
• US: Vinod Khosla
• Chinese and Malaysian investors too
Poverty Sustainability
Weak Strong
Wealth
Sustainability
Strong Weak
Zespri • April 2009: Published its carbon life cycle analysis:
• Orchard operations make up 17% of total emissions for EU exports
• Packhouse & coolstore processes account for 11% of total emissions
• Shipping accounts for 41% of total emissions
• Repacking and retailer emissions amount to 9% of total emissions
• Consumer consumption & disposal comprises 22% of total emissions
• Bottom line: resource efficiency builds a more profitable, resilient business
• E.G. Kite-assisted ships save 22% of their fuel bills on average
Our future
• NZ Land: 270,000 sq km
• Australia’s 28x NZ
• NZ Oceans: 5.8m sq km
• 5th largest in the world
• Australia’s 1.4x NZ’s
• Huge responsibility:
• …to nurture
• …to use responsibly
• …to sustain us • We need new values, systems, collaboration:
• …to be sustainable
• …to offer hope to the world
Poverty
Simplicity Complexity
Accounting • Fra Luca Pacioli
• …Venetian monk, polymath, friend of the clever, creative, rich and famous
• …including Leonardo da Vinci
• Published in 1494 Summa de arithmetica
• …which included the first full, public description of the secret double-entry book-keeping system used by Venetian merchants
• Basically, we’ve been double-entry book-keeping (assets/ liabilities; credits/debits etc) ever since
• Financial accounting…
• …brilliant but limited, thus flawed
Management matters • NZ government-funded study of
large and medium NZ manufacturers
• Study by London School of Economics and McKinsey… …sub-contracted to University of Technology Sydney
• Comparisons with 16 countries
Raising laggards has huge economic impact
Wealth
Complexity Simplicity
New management disciplines • Relationships: from transactions to partnerships
• …particularly highly strategic ones
• Innovation: from incremental to radical
• To meet new needs…in new ways • Open innovation and other forms of collaboration • New opportunities for NZ companies to partner with global ones
• Sustainability: from fringe to mainstream
• Measuring and managing environmental flows through our businesses • Push down the road to true sustainability
• Management: from tactical to strategic
• Need to collect, interpret and act on real-time data • Everything we do today is a piece of our big picture
Integrated Reporting • The next big initiative by corporates
and accounting bodies
• Seeking to make financial, environmental and social measures…
• …much easier, more accessible and more useful to corporates, investors and the public
• www.theiirc.org
Agenda
• World
• Revolution
• New Zealand
• Opportunity
• Paradox
• Companies
Vanguard NZ companies • An exciting new class of NZ companies is emerging:
• Hallmarks:
• Inspired products & services offering unique value
• Originality born of NZ roots
• Smart strategies for international markets
• Astute management skills to acquire & develop human & technology skills; capital
• Confidence & skills to collaborate with partners, suppliers, customers abroad
• Across the economy: domestic; import; export
Quadruple B businesses
• Building
• Billion $
• Businesses from the
• Beach
• Rod Drury…
• …serial entrepreneur
• …founder of Xero
www.3000.org.nz
“You’ll have no future…
…if you don’t make one for yourself”
… Johnny Rotten:
Thank you